Key Highlights

● Third-quarter net sales rose 2% to $962.6 million, with diluted EPS of $1.66.

● Full-year 2026 EPS guidance was raised to $4.65 to $4.90 at the low end.

● A brokerage raised its price target to $83 from $80 and kept a Buy rating.

● Operating cash flow guidance was cut to $230 million to $250 million.

Columbia Sportswear (NASDAQ:COLM) reported third-quarter 2026 results after Thursday's close that topped Wall Street's forecasts. Net sales rose 2% to $962.6 million, and diluted EPS came in at $1.66, up from $0.95 a year earlier. Market data put the consensus at $1.28 a share on Revenue of about $944.9 million, so the Portland, Oregon-based outdoor apparel maker beat on both counts.

The year-ago quarter included $29 million of Impairment charges tied to the prAna and Mountain Hardwear brands, which cut that period's EPS by $0.46. Operating Income rose to $109.6 million, an 11.4% margin, from $67.4 million. Gross Margin slipped 20 basis points to 49.8%, as factory-partner accommodations were partly offset by refunds of tariffs collected under the International Emergency Economic Powers Act.

"We're pleased to have delivered net sales and EPS growth exceeding our guidance for the third quarter," Chief Executive Tim Boyle said in the release. He said the outlook "gives us the confidence to raise the low end of our full-year revenue and EPS guidance."

The new guidance and the brokerage call

Columbia now expects 2026 net sales of $3.46 billion to $3.50 billion, up from $3.43 billion to $3.50 billion, and diluted EPS of $4.65 to $4.90, up from $4.45 to $4.90. Operating income guidance narrowed to $300 million to $320 million. One number went the other way: Operating Cash Flow guidance was cut to $230 million to $250 million from $290 million to $310 million, which the company tied to producing Spring 2027 inventory earlier.

The implied fourth-quarter outlook calls for net sales of $1.108 billion to $1.145 billion, up 3.5% to 7.0%, and EPS of $1.85 to $2.10, versus $1.73 a year earlier. Management also expects first-half 2027 wholesale sales to grow at a mid-single-digit percentage rate on a larger Spring 2027 order book.

On Friday, a brokerage raised its price target to $83 from $80 and kept a Buy rating, according to market data, implying about 30% upside from a cited price of $63.69. Not every broker is bullish: market data lists a Sell rating reiterated by another brokerage on Friday, and its tally of analysts shows a consensus Hold with an average target of $66. No confirmed premarket price move was available at the time of writing.

Mixed regions, and the risks

The Brand mix tells a story of its own. Columbia brand sales rose 3% to $826.2 million and SOREL gained 2%, while Mountain Hardwear fell 17%. U.S. sales slipped 1%, offset by an 11% jump in Latin America and Asia Pacific and 7% growth in Europe, the Middle East and Africa. Direct-to-consumer sales rose 5% and wholesale was flat. Boyle said the company is "increasingly confident" that its ACCELERATE growth strategy for the Columbia brand is gaining traction.

Risks include inventory, which rose 11% to $889.2 million, a soft U.S. market, and tariffs: guidance assumes current U.S. Tariff rates stay in place through year-end. The company has no borrowings and holds $229.6 million in cash and short-term investments after buying back $200 million of stock in the first nine months.

Through nine months, diluted EPS was $2.82 versus $1.53 a year earlier, with tariff refunds adding $0.85 of that, so investors will be watching how much of the improvement carries into 2027 once those one-time refunds fade.

Columbia trades on the Nasdaq and is part of the Nasdaq Composite, which faces a tough open after Amazon (NASDAQ:AMZN) and Intel (NASDAQ:INTC) results pushed Nasdaq-100 futures down about 2.6% as of roughly 7:56 a.m. ET, per market quotes. Shareholders of record on Nov. 19 receive the $0.30 quarterly Dividend on Dec. 3; the fourth-quarter report and holiday-season weather are the next tests.